Economy
Cost of Living Is Much Higher Than 40 Years Ago — and Inflation Isn’t the Only Reason
Americans may be struggling to afford basic living expenses this year, but inflation isn’t the only reason.
According to a report in The New York Times published on Wednesday, October 21, wages are higher and basic goods are cheaper, but other costs associated with a comfortable middle-class lifestyle are higher than ever.
Health insurance costs have more than tripled. Insurance premiums for a year of coverage for a family totaled $2,520 in 1987, per the outlet. Adjusted for inflation, that cost should be $7,012. But the actual average in 2026 is $26,993, a 3.8-times increase.
In 1986, a four-bedroom home in the Chicago suburbs cost $244,000, which is $692,853 in 2026 dollars. Its actual 2026 sale price was $1,250,000.
A semester of in-state tuition and fees at the University of Tennessee cost $375 — $1,105 adjusted for inflation — in 1985, according to the outlet. But students now are expected to pay $7,012, making it 6.3 times as expensive.
One of the biggest increases, The New York Times found, was in entertainment expenses. NFL fans had to pay just $75 for a ticket to the Super Bowl in 1986, when the Chicago Bears faced off against the New England Patriots in New Orleans.
Based on inflation alone, a ticket to watch the Kansas City Chiefs play the Philadelphia Eagles last year in the same city should have cost $213. But as the outlet points out, purchasing the lowest available ticket a week before that game would have cost 15.6 times more, or $3,316.
However, some prices have actually gone down, The New York Times noted. Adjusted for inflation, the price for a mid-sized Sony TV cost a whopping $1,156 in 1987, but you can buy one now for less than $400.
